Buffett's Gambol

The second wealthiest man in the U.S. recently stated that he should pay more Federal income taxes. He went on to say that his tax rate was lower than that of his receptionist. What he didn’t say was that even at his lower rate he paid a vastly larger tax.
This post has several sensible points, the simplest being that his tax rate does not prohibit him from giving as much of his wealth as he may wish to whomever he may wish (including governments) whenever he feels burdened by his wealth.
Of course, this wealthy man’s widely reported publicity stunt has less to do with tax rates than with his palpable efforts to influence tax politics. He doesn’t really want to redirect more of his cash flow to the Treasury; he wants to force others to pay more taxes so that through government a “liberal” elite, of which he would be one, can control even more of the economy than it does now. Such stunningly senseless tax politics assumes that government knows best how to spend and transfer producers’ wealth, and that it will forever respect the political and social interests of wealthy paternalistic planners.
The second point of this post is that especially in the U.S. wealthy taxpayers acquire wealth largely by creating more wealth amid increasing competition for capital from around the world. Mr. Buffett’s enterprises have been very successful, so successful that Mr. Buffett suddenly seems at a loss as to how to further employ his embarrassment of riches. Rather, he seems to suggest that his wealth has no greater future return to him than by influencing tax policy toward greater egalitarian social purposes. Hmmm. If Mr. Buffett is at the end of his entrepreneurial genius, then the average buffoon better throw in the towel and petition for the privilege of becoming cup bearer at Mr. Buffett’s court.
A final point is that government has been enjoying record tax receipts as a consequence of unprecedented U.S. wealth creation fostered by low capital gains and dividend taxes. It has never had so much money to spend on guns and butter than it has today. Nevertheless, while ignoring growing future social obligations, it spends those receipts and more, suggesting that it thinks future wealth creation and resulting taxes always will pay for its redistributive largess despite much evidence that high personal income and capital taxes drive wealth out of a country in search of lower taxes.
Thinking persons may want to consider that already just one percent of earners pay some 40 percent of Federal tax receipts. Further, the top 25 percent of earners pay more than 85 percent of receipts. The sensible person will recall a historical tendency for those who pay for most of government first to influence and then to own that government. Said another way, as the principles of a broadly-based taxation embodied in our Constitution become subverted, the rights of ordinary taxpayers will shrink along with their taxes.
Bread and circuses, anyone?